What is success? It’s abstract, really. For some, it could be money and status. For others, it’s finding happiness. In business, we tend to measure success starting with profit.
In talking to entrepreneurs, I am always fascinated with the different perspectives of success. In general, they believe their ideas are incredible and the obstacles they need to overcome are constraints like finance, resources, marketing, and competition.
I argue that their potential barriers are actually achieving excellence in developing and executing great programs. Why do I think this? Well, 90% of new businesses fail withing five years, and that includes IPOs and venture capital efforts.
Consequently, there are several issues that need to be addressed in order for entrepreneurs to reach their full potential. When an entrepreneur thinks about starting a business, there are two distinct concepts that pop up time and again: Passion and Reality. These are both critical to success.
Passion was best described by Steve Jobs when he said, “Because the people who are crazy enough to think they can change the world are the ones who do.”
Reality is understanding the problems, limitations, and constraints associated with any undertaking. As Thomas Edison said, “A vision without execution is hallucination.” Passion is what gives us the drive to overcome these obstacles. It is the excitement and energy that drive a start-up. It is crucial to balance these two concepts if you want to execute a successful business.
You also need more than a good idea—they’re a dime a dozen. Your best friend might have the next million-dollar App idea. Ideas are great as they are the true engines of innovation. However, an entrepreneur needs to determine whether they can execute the idea and, ultimately, make enough sales to earn a profit. New businesses frequently fail because small (yet critical) issues are overlooked.
Here are some recommendations to help increase potential:
Plan smartly. Think of planning as a long arduous test with lots of work, incorrect assumptions, and missing analysis. For example, 2022 financial markets haveclearly made prior economic and financial assumptions in any plan highly uncertain. The solution is to make plans simple, flexible, and solely for the entrepreneur and not outside parties. It should be a guide, not a fixed template.
Keep plans current and active. A business plan is not a document to be stored on a shelf; it should establish parameters and be developed, tested, and continuously revised. Even with a “perfect” business plan, there will be hiccups and failures along the way.
Learn from failures. This is a critical component of the ongoing planning process.
Focus on passion. This will keep you going through the failures. Additionally, a successful business plan should express why you think the business is a good idea and why it will succeed. If you need to dress it up in a suit and tie to show to investors, do that later. A business plan should be YOUR vision.
Set realistic goals. While time frames, levels, and processes can vary, you need a plan to show profitability: the when and the how. You may do what you do for a number of reasons (passion, fun, fulfillment), but at the end of the day, a business needs to make money if it’s going to last. Make sure that you set your passion aside for a moment and make sure you’re on the path to profitability. What resources do you have and need? Many entrepreneurs follow guides related to large venture capital ideas while most small businesses earn less than $1 million per year. Be pragmatic in these matters.
Take risks. This is a critical part of every entrepreneurial win. Frankly, I think we all need more of it. We tend to think of risk as a taboo concept and it’s really not—once you understand it. In order to benefit from risk, you need to define what risk is to you. Some people view risk as the potential for harm or hazard (think bungee jumping). I view risk as an uncertain circumstance in which one manages to maximize the gains. But, how do accomplish this?
Utilize analytics. More analytics in sports is creating opportunities to assess strengths/weaknesses and create new winning strategies. It has enabled athletes to take more three-point shots, hit more home runs, longer golf drives, and score more touchdowns. More knowledge = more informed decision = less risk.
Consider value and probability. These should inform your goals and processes. For example, winning the lottery has an extremely high reward, but also has low probability. Purchasing investment bonds has lower return than buying stocks, but the risk and volatility of buying stocks is higher.
Be flexible. There are a lot of moving pieces involved in a business plan. And curve balls are inevitable as our world is constantly changing.
Remember it’s an ongoing process. It takes time, dedication, and consistent effort. Peloton, which was one of the hottest companies in the country, recently experienced over a 25% decline in sales. So, we need to constantly compare goals, risk, and the potential of alternatives.
Listen to your gut. Sometimes you just have to go for it. We tend to overthink things or let fear stop us from challenging the status quo. But, if your intuition is telling you something, it’s usually worth listening.
Just as there is no single definition of success, there isn’t a certain path to achieve it either. But, you can set yourself up to increase your chances by creating clear goals and understand the risk, the rewards, and the importance of developing a smart business plan. And don’t forget your passion—the reason you started your business in the first place. Success isn’t fun if you’re not enjoying what you’re doing.
Dr. Bert Shlensky, president of Startup Connection, prides himself on his ability to define what is unique about each and every business. He works closely with individuals to develop a personalized approach that targets specific areas of concern and offers solutions based on his 40+ years of experience. His expert team will address your particular needs while working to save you time and money.
What’s an easy decision? Do they exist? Perhaps, deciding whether you want chocolate or vanilla ice cream… You have two choices, which do you prefer? Seems pretty simple and straightforward. Now, what if you’ve set a goal to eat less sugar… The scale tips toward vanilla… but, you’ve also set a goal to save money and the chocolate is on sale… Now, there’s even more to consider.
Although choosing an ice cream flavor may seem trivial, is exemplifies a very important point: The more moving pieces involved in a decision, the more difficult it is to make. And while more information enables better decisions, more variables make the decision-making process more complex.
The same applies to goal setting and measurement. We all recognize their importance, but achieving accuracy is more complicated. Setting goals and measuring used to be fairly simple as they usually related to maximizing and measuring dollars in a particular period. But, as is often the case, times change and now traditional guidelines are almost obsolete and need revision.
For example, in our growing and more complex economy, millions of workers have been leaving their jobs and pursuing other options. Work at home, lifestyle expectations, stress, and work environment are all supplementing wages as key factors in employment and turnover decisions. Additionally, climate change, current events with Russia, inflation, COVID, the stock market, politics, and diversity are all experiencing rapid changes and simultaneously impacting our economy and lifestyles.
Consequently, these societal changes also affect goal setting and measuring.
So how do we improve goal setting and measurement to make them work for us?
Consider the details surround a goal: Long-term versus short-term, quantitative versus qualitative, risk, and objective versus subjective. We also need to think about the process and complexity of setting goals. For example, do you want realistic and achievable or stretch goals? If goals are too simple, they can ignore important aspects of a situation. On the other hand, if there are too many aspects to consider, there can be a lack of focus.
Focus on key elements: Measurement has become quite complex. Ask yourself how important are the results, speed, innovation, and quality when measuring performance? For example, I believe automation has improved the speed and efficiency of many customer service processes. However, customer service and satisfaction are frequently sacrificed. How many times have we been completely frustrated with ineffective electronic customer series efforts? There is a trade off here that needs to be taken into consideration.
Make communication a priority: In most efforts and organizations there are multiple goals and demands. With so much to manage, critical issues can arise in the areas of prioritization, comparison, and measurement. Communicating goals and their measurement throughout an organization is frequently a secondary priority. Why have them if you don’t manage them?
Examine alternatives and change: Do we understand and really believe our goals? For example, nearly everyone acknowledges that the college admissions and decision processes are a mess. Measurements gathered from a broken process don’t tell us anything useful. Reevaluate a system that isn’t working and set new goals that will yield worthwhile measurements.
Get specific: We all understand the importance of goals, purpose, and direction in cultivating commitment, success, teamwork and coordination. Yet, somehow the execution often goes awry. One common reason for goals not being set correctly is that it can be a difficult process. One of the advantages of professional sports is that the goal of winning is simple and clear. It’s not always quite that simple in other businesses, but the more specific you can get, the easier it will be to execute.
Consider various angles: Short-term versus long-term goals is the best example of how goals may conflict. Much of the financial crises in 2008 resulted from short-term greed conflicting with long-term rationality. Remember to look at things from various perspectives and how time may affect progress.
Don’t forget about bias: Bias is, perhaps, the biggest culprit in unreliable results. For example, customer service surveys are notoriously designed to create positive publicity rather than fair evaluations. The purpose of measurement should never be to confirm your positive bias.
Goals and measurement need to be a tool for business improvement rather than an end in itself. Goals are not easy to develop or measure, but the process is critical to organizational success.
Set goals to motivate you and your team to grow and use measurement to genuinely gauge where you’re at and where you need improvement. Ask yourself (and answer honestly), “What am I measuring? How am I measuring? And what is the purpose of my measurement?”
Whether it’s sales, profits, service, customer satisfaction etc., reliability and measurement over time are vastly underrated!
Make goal setting a priority and communicate your goals to those involved. Be certain to understand the different needs of different situations. Use clear and simple measurement tools, and be sure to utilize the process for improvement, rather than a tool for criticism. And remember, we set goals to make progress and even if we don’t achieve what we set out to accomplish, we still end up further along than where we started. So, stay focused on your goals, make them word for you, measure your progress, and keep moving forward.
Dr. Bert Shlensky, President of www.startupconnection.net, offers experience, skills, and a team devoted to developing and executing winning strategies. We guide your plans for business success and unlock your profits.Our strategy includes clear steps, and over 150 free articles and templates to facilitate your efforts and guide your process. We’re here to help you get on track and stay there as you move forward.
We welcome comments, suggestions, and questions. You can write us at: bshlensky@startupconnection.net or call at 914-632-6977
Positive expectations lead to positive results. This is because confidence and energy increase when we believe in ourselves. Conversely, a negative outlook contributes to a lower chance of succeeding. Basically, with positivity, we are capable of whatever we believe we are capable of.
It makes sense, therefore, to create more opportunities to include positivity. This can manifest in many forms: attitude, environment, expectations, etc.
In recent years, it has become more difficult to maintain positive expectations as stress and uncertainty have skyrocketed as a result of the pandemic. Not surprisingly, there has been an increase in depression, suicide, drinking, and crime.
On one hand, we put up with and even enable negativity and bad behavior. For example, in recent weeks, a coached punched another coach, an actor hit another actor, and we allowed senators to act disgracefully while utterly disrespecting a Supreme Court nominee. While all of these occurrences should be intolerable, most of the reactions were minimal or people used it as material for humor. Bad behavior should not be tolerated the way it is.
Fortunately, to offset this, there have also been some recent examples that highlight how positive efforts can improve situations. One of the most incredible reactions to the challenges with Russia is the response of Poland and Ukraine. They have literally helped millions of refuges find food, shelter, clothing, and new lives in less than a month. Their efforts are proving we can be kind, caring, and positive in an environment that is sometimes completely chaotic.
So, how do we forge ahead with a positive outlook that encourages and fosters good behavior and successful results?
Be supportive. Watching parents and little kids is one of the best examples of executing positive expectations. Kids learning to talk, walk, or ride a bike are full of excitement and confidence. At the same time, parents are supportive, encouraging, and watching with glee. If we could support one another, both in and out of work, with this same enthusiasm, how much more successful could we all be?
Consider your perspective. A great (and often unused) tool for developing more positive solutions is to recognize parameters. The recent volatility in the stock market has been well documented. What is not clear is how to analyze and interpret it. For example, two publications reported results with different interpretations and perceptions. One reported that the S&P 500 increased 3.6% in March. The other reported that the S&P 500 declined 4.9 % in the quarter. Both are true, but the interpretation is different.
Weigh all the options. For example, going back to the office creates numerous positive opportunities while working from home has numerous cost, privacy, and lifestyle benefits. In particular, new technologies have made communication, sharing files, and interaction even better. However, being in the office encourages better culture and communication benefits. We must better understand situations, needs, and performance to develop the best solutions. Many decisions are based on tradition and opinions, but maximizing the alternatives can have great benefits. Which option produces the most positive results?
Get out of your comfort zone. Take risks, shake things up, and avoid getting stuck in a rut. This is how we continue to challenge ourselves and foster growth. Risk needs to managed rather than feared. Understanding the risk, the rewards, and the importance of each can help you improve outcomes. Don’t allow fear, uncertainty, or tradition to lower your potential and prevent you from trying something new. The positive: no matter the results, you have gained valuable tools that will help you to continue improving.
Take advantage of opportunities. We’ve had a lot of disruption lately and that can often feel like a challenge rather than an opportunity. But, in my own experience with corporate turnarounds, it’s much easier to motivate, innovate, and develop collaboration in troubled or changing organizations than within those whose culture is based on the closed-minded rule of “we’ve always done it this way.” It’s amazing how many individuals and organizations have incorporated new efforts like E-commerce, work-from-home, Zoom, etc. in order to adapt to the times and, consequently, have actually improved their results.
All of this isn’t to say that every situation should be met with a naive sense of positivity. There are, of course, situations that are very nuanced and require more than a “just look on the bright side” response. Negative emotions should be addressed and we should always try to respond to distress with empathy rather than false reassurances.
In the end, however, looking for the positive rather than focusing on the negative usually gets us further in the long run. I think we can all agree that we’re happier when there are good things happening. So, let’s not only look for the positive, but help put more positivity out there through our work, thoughts, words, and actions.
Please visit our website www.startupconection.net to book a Free Session in which we can help you develop an action plan that will evaluate potential and risk. We always discuss process, expected outcomes, and cost before you make any commitment.
Dr. Bert Shlensky, president of Startup Connection, prides himself on his ability to define what is unique about each and every business. He works closely with individuals to develop a personalized approach that targets specific areas of concern and offers solutions based on his 40+ years of experience. His expert team will address your particular needs while working to save you time and money.
If you think are you aren’t susceptible to denial, you’re in denial. It’s a difficult thing to manage, compared to simple lying, because much of denial can be unconscious and, as a result, more difficult to recognize and change. But, change we must, because denial prevents us from seeing and addressing critical issues that could greatly affect outcomes, both personally and professionally.
I find that, except for the news, we favor positive circumstances and sometimes deny challenges. We “see what we want to see” by checking the stock market or the score of the game only when we’re ahead. We look for positive weather forecasts and focus on the great things about our kids. This type of tunnel vision can make it hard to see the whole picture. It can also affect decision-making in cases where positive bias greatly alters assessments.
Psychologically, denial is a mechanism that results from the inability to cope with reality. However, there is an immutable fact about denial: it does not work as a long-term problem-solving mechanism. Reality always wins. And when it does, the next step in the process is blame, which shifts responsibility onto someone or something else. Blame eases the pain when reality bites. But, we need to take ownership of our actions and recognize that if we work to avoid bias and denial, we can often avoid having to face a harsh reality down the road.
Bias is one of the greatest deterrents of accurate scientific analysis. I also believe social bias can be more impactful than statistical. These include our preconceived perceptions and assumptions. I am always amazed that many programmed employee selection tools outperform interviews, especially in jobs requiring specific skills. Similarly, the perceptions of many presentations are established in the first minute or so.
Cultural and environmental factors also affect bias. Dress, demographics, weather, location, and culture all affect perceptions in the decision-making process. These can also be used to your advantage when talking to colleagues by increasing bonding with similar people. Whenever I meet someone who is also from the Southside of Chicago like I am, agreement on differences becomes much easier.
Denial is more prone to happen when there is more complexity and variables involved in a situation. Our brains try to counter this by attempting to create simplicity. Once we understand that this is what is happening, we can use to our advantage. For example, we all know simplicity can help decision making by prioritizing, focusing, and pursuing clear goals. On the other hand, we need to consider multiple factors like rewards, probability, environment, resources etc. in making our decisions. Here are some examples where the two strategies can be complementary:
The 80-20 rule (which states 80% of results are from 20% of effort) calls for focus to be more important than ever. Eliminating unproductive efforts is the most important aspect of the 80-20 rule.
More data, variables, and analysis are generally good, but it must be useful, valid, and correct. For example, if you are measuring an outcome, pinpoint the important factors rather than trying to measure everything. In particular, you should be careful to avoid random relationships and misinterpreting cause and effect. For instance, pre-pandemic data may be less relevant than before.
Most efforts have multiple goals like sales, growth, profit, quality, good will, satisfaction, etc. What is the priority and importance of these goals and how are you measuring them? Personally, I am always battling writing long blogs that are intellectually interesting versus short practical blogs with specific recommendations.
There are tradeoffs among innovation, experience, excellence, risk, and quality. Quite simply, the more innovation you pursue, the more trial and error. In contrast, you want experience and quality if you are doing things like open-heart surgery.
Denial reduction can also be affected by our attitudes and mood. Don’t underestimate the benefits of just taking a break or getting enough sleep in developing a more realistic approach. One of the side effects of working from home may be an endless workday and a lack of distractions, which provides no time to relax and reenergize.
Balancing simple and complex tasks can be improved by focusing on your strengths and paying less attention to your weaknesses. For example, I have a client who has the best product in the industry, but charges a little more money. She has achieved success by moderating some prices, but mostly developing messages that explain her quality difference.
Don’t underestimate intuition, which is quite different from denial. While we continually get more data to make better decisions, we should not forget our gut feelings. Someone does win the lottery and some of the best outcomes come from low probability efforts. For example, the pandemic has caused great uncertainty about 2022 and there are lots of opportunities to take a little more risk.
The use of virtual rather than rigid models can help deal with complex issues. They are easier to understand, diagnose errors, and manage multiple situations. In general, we are moving towards more flexibility in decision-making.
Openness can also facilitate avoiding denial. Organizations need to be open to measurement and feedback. Observing, understanding, and sharing financials, operations reports, and sales reports are the first step. Simple research tools that social media can provide can be used regularly. A management style such as the “walk around” and asking simply, “how are you doing, is there anything you need?” can be priceless. Look for alternatives and ‘what if’ discussions.
We all experience denial, but it is our responsibility to admit when we’re allowing our own biases to influence us or giving in to our brain’s desire to simplify complex issues. Therefore, we must constantly work to develop safeguards that will help recognize, test, and avoid denial. Because when we can see the full picture clearly, we are able to react and respond in the most effective way.
If we didn’t realize it before, the pandemic certainly proved how important human connections truly are. As social creatures, we thrive on interaction with our peers. So, it is no surprise that many of us struggled personally and professionally while unable to connect with family, friends, colleagues, and coworkers for an extended period of time. However, with vaccinations helping to increase our ability to see each other once again, one of the biggest opportunities we are presented with is the potential to reconnect and start new connections.
We need to consider just how much the last couple of years distanced us from others, aim to accept and adapt to the things that have changed, and actively work to rekindle existing relationships while continuing to build new ones. For example, offices are reopening and we need to understand the pace and extent of the reopening. Water cooler jokes may be obsolete, but connecting via Zoom will probably be here for the long-term.
So, what can you do in this new norm to adjust in order to foster worthwhile and effective connections? This should not be a sophisticated analytical exercise. Instead, I suggest simpler and, sometimes, known recommendations that can be quickly adapted:
Small moments make a difference. Saying please and thank you go a long way. Asking, “how are you?” (and truly listening to the response) can really benefit a conversation.
Be brief. Keep things simple whenever possible. And, when creating a presentation, try cutting it in half… then cut it in half again! It’s better to keep people wanting more.
Make a meaningful impression. Did you know that 90% of most impressions are made in the first 30 seconds of contact, and they are not based on the substance of the communication? Make those 30 seconds count.
Utilize facial expressions and body language. Your eyes, mouth, brows, and other facial features can reveal more than what you say. These clues give professionals better effectiveness in meetings. Especially with the rise of virtual interactions, it’s helpful to be more expressive in order to convey your meaning and/or attitude.
Interpersonal trust. Invest in building personal trust and developing richer sensory experiences that help cultivate connections. For example, our sense of touch (like when we shake hands) conveys emotions that can greatly enhance our communications.
Develop and use new communication tools and don’t depend on PowerPoint. It is among the most overused current communication tool and it ignores the needs of the audience. There is nothing worse than having the lights go out and sitting through a 30-60 minute canned, slick, PowerPoint sales presentation. Instead, aim to create a presentation that engages and interacts with your audience.
Understand and respect colleagues, clients, and competition. Asking questions is one of the best ways to gain a better understanding of someone else’s experience. Additionally, when reviewing your service offering or considering new ideas, try asking yourself what customers are currently using and how your product or service is better? In other words, why should customers choose you? Genuinely knowing your customers will help you answer these questions.
Recognize the benefits and strengths we learned from video and virtual communication. Workers are becoming increasingly comfortable using video and audio-conferencing technology. Companies are acknowledging and accepting the benefits of online meetings, such as greater reach and efficiency. Use these to your advantage.
Focus on engagement. Distractions continue to be a challenge, but they aren’t a result of technological limitations. The solution is actually in the way we run meetings. With enhanced visibility, live chat, polls, surveys, and even sub-conferencing features, guests can easily ask questions, gain clarity, brainstorm, and collaborate together. It’s just a matter of finding what works best for your meetings.
A great presentation relies on several different aspects. It’s not just about the words you say or the images you show. The entire experience plays a part in how much the audience retains or feels inspired. People can become preoccupied with the environment of the meeting. Communication, lighting, room temperature, and other factors can ruin a connection. The easiest recommendation to improve audience connection is with food. We all know what it’s like to get hungry, bored, and distracted, especially in long sessions. Taking breaks and offering snacks can reduce boredom and fatigue.
Interpersonal connections are the glue holding together our social circles, our business networks, and our company cultures. When we put in the work to maintain existing relationships and strive to establish new connections in a healthy, respectful, and effective manner, our lives and businesses are better off for it. While some people may have grown distant over the last couple ears, there are always ways to reach out and revive these connections. Great opportunities often arise from those we know. And when we are all looking out for one another, rooting for each other, and helping one another succeed, that’s when we know we’ve truly cultivated valuable and genuine connections.
Dr. Bert Shlensky, President of www.startupconnection.net, offers experience, skills, and a team devoted to developing and executing winning strategies. We guide your plans for business success and unlock your profits. Our strategy includes clear steps, and over 150 free articles and templates to facilitate your efforts and guide your process. We’re here to help you get on track and stay there as you move forward.
We welcome comments, suggestions, and questions. You can write us at: bshlensky@startupconnection.net or call at 914-632-6977
When you want to stand out, reach out to Bert for the tools that will build your “sticky” brand. My focus is on understanding and analyzing your dilemmas and challenges, so your company becomes profitable faster.
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